Intrinsic value (numismatics)
In numismatics, intrinsic value, also known as melt value, is the value of the precious metal in a coin. For example, if gold trades in commercial markets at a price of US$ 1200 per fine troy ounce, then a coin minted from one troy ounce of fine gold would have an intrinsic value of US$ 1200.
When a coin is in use as money and the intrinsic value becomes greater than the face value, these coins are in danger of being removed from circulation in large numbers (an expression of Gresham's law). When copper prices skyrocketed in the mid-to-late 1970s, there was a fear that the U.S. one-cent piece might succumb to this fate, leading the Mint to change the composition of the cent in 1982.[1]
| Intrinsic or melt value | The market value of the constituent metal within a coin. |
| Legal or face value | The legally defined value of a coin relative to other units of currency. |
| Market value | The price that a coin will fetch in the marketplace. For most coins in circulation this value is coincident with the face value. |
References[edit]
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- ↑ "The Transitional Cents of 1982 | NGC". www.ngccoin.com. Numismatic Guaranty Corporation (NGC). Retrieved 2017-08-04.
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